Major EPFO Rule Change Announced, Benefits For Employees & Account Holders

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In what is definitely a very significant rule change, the Employees’ Provident Fund Organisation (EPFO) has actually enacted a new law for an economic relief and advantages for millions of employees and account holders. This new update pursuantly envisages some process simplification, an increased level of accessibility, and even more financial security to EPF members. So, without any further delay, let’s elaborate on this big EPFO update for employees and account holders.

Key Highlights Of The EPFO Rule Change

1. Easier PF Withdrawals 

  • The new rule simplifies the withdrawal process, allowing employees to access their Provident Fund (PF) savings more conveniently.  
  • Employees will also be able to withdraw their PF directly through UPI or ATMs; therefore, their transactions will be much faster and smoother.

2. Auto-Update of Member Details  

  • EPFO has enabled automatic updates for the most important details like name, date of birth (DOB), and other personal information without requiring any additional documents.  
  • For example, an employee could update changes if their Aadhaar is linked with UAN (Universal Account Number).

3. Higher Insurance Under EDLI Scheme  

  • The Employees’ Deposit Linked Insurance (EDLI) scheme now ensures that even after changing jobs, employees still enjoy the benefit of insurance coverage up to ₹7 lakh.  
  • It therefore offers employees financial security to their families without having to worry about continuity in employment tenure.

4. Improved Pension Benefits

  • EPFO made some changes in the Employees’ Pension Scheme (EPS-95)*
  • that would allow members to convert their total PF balance into pension.  
  • The prime focus of this move is to provide the higher monthly pensions expected from the retired employees for a steady income source post-retirement.  

5. Faster Claim Settlements 

  • In light of digital innovations, EPFO has **done away with the duration for which claims were kept pending before being settled, so that employees can receive their money within a few days.  
  • Now, claims can be tracked by the members using EPFO’s online portal or mobile app.  

This Is How This Rule Change Benefits Employees  

  • Convenience: Employees find it easy to access PF for withdrawal via digital platforms.  
  • Financial Security: The coverage of insurance stands intact even after job changes.  
  • Higher Pension:More flexibility in *converting PF savings into pension for long-term benefits.  
  • Time Saving: Faster claim settlements and automatic update without extra documentation required.  

Conclusion  

This rule change by EPFO is a major relief for employees as well as account holders, in terms of accessibility, financial security, and convenience. The above-mentioned improvements show how the government intends to get EPFO services modernized to help workers manage their retirement savings and benefits. All employees are therefore advised to check their UAN status and Aadhaar linking to benefit fully through these changes.

Also Read: Salary Boost Alert: DA Hike Of 2-3% Expected, How It Affects Your Pay

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